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Revenue (Tables)
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of revenue disaggregated by product and services
The following table discloses revenue disaggregated by type of product and service (amounts in thousands):

Three Months EndedNine Months Ended
September 30, 2023September 30, 2022September 30, 2023September 30, 2022
Service revenue:
Subscriber services
Duplex$7,978 $9,021 $20,088 $22,103 
SPOT11,350 11,753 33,703 34,544 
Commercial IoT6,347 4,673 16,881 14,381 
Wholesale capacity services27,517 6,972 83,406 22,640 
Engineering and other services451 882 1,167 2,025 
Total service revenue53,643 33,301 155,245 95,693 
Subscriber equipment sales:
SPOT1,746 1,558 6,185 4,707 
Commercial IoT2,262 2,713 9,975 6,427 
Other32 54 (6)371 
Total subscriber equipment sales4,040 4,325 16,154 11,505 
Total revenue$57,683 $37,626 $171,399 $107,198 
Schedule of accounts receivable and contract liabilities The Company's receivable balances by type and classification are presented in the table below net of allowance for credit losses and may include amounts related to earned but unbilled receivables (amounts in thousands).
As of:
September 30, 2023December 31, 2022
Accounts receivable, net of allowance for credit losses
Subscriber accounts receivable$20,203 $14,850 
Wholesale capacity accounts receivable21,322 7,234 
Agency agreement accounts receivable1,693 4,245 
Total accounts receivable, net of allowance for credit losses$43,218 $26,329 
Long-term wholesale capacity accounts receivable— 16,100 
Total accounts receivable (short-term and long-term), net of allowance for credit losses$43,218 $42,429 
The Company's contract liabilities by type and classification are presented in the table below (amounts in thousands).
As of:
September 30, 2023December 31, 2022
Short-term contract liabilities
Subscriber contract liabilities$24,281 $21,987 
Wholesale capacity contract liabilities33,810 52,652 
Total short-term contract liabilities$58,091 $74,639 
Long-term contract liabilities
Subscriber contract liabilities$1,605 $1,704 
Wholesale capacity contract liabilities, net of contract asset415 61,173 
Total long-term contract liabilities$2,020 $62,877 
Total contract liabilities$60,111 $137,516 
The components of wholesale capacity contract liabilities are presented in the table below (amounts in thousands).

As of:
September 30, 2023December 31, 2022
Wholesale capacity contract liabilities, net:
Advanced payments for services expected to be performed with the second-generation satellite constellation during Phase 1 (2)
$6,079 $99,671 
Additional consideration associated with the 2021 and 2023 Funding Agreements (3)
13,921 — 
Advanced payments for services expected to be performed with the ground spare satellite launched in June 2022 during Phases 1 and 224,113 25,438 
Advanced payments contractually owed for services expected to be performed with the next-generation satellite constellation prior to the Phase 2 Service Period15,700 22,540 
Advanced payments for the Phase 1 service fee and service-related operating expenses and capital expenditures
20,496 18,872 
Contract asset (1)
(46,084)(52,696)
Wholesale capacity contract liabilities, net$34,225 $113,825 


(1)In November 2022, the Company issued warrants to Partner (the "Warrants"). The initial fair value of the Warrants at the time of issuance was $48.3 million and recorded in equity with an offset to a contract asset on the Company's consolidated balance sheets. The fair value of the Warrants is recorded as a reduction to revenue over the period in which the Company performs its performance obligations through the estimated completion of the contract term, consistent with the period in which the customer benefits from the services provided.
(2)During 2021, the Company received payments from Partner totaling $94.2 million (the "2021 Funding Agreement"). In February 2023, the Service Agreements were amended. This amendment, which was effective in April 2023, changed certain terms in the 2021 Funding Agreement, resulting in $88.0 million previously recorded as deferred revenue being re-characterized as debt. See further discussion in Note 6: Long-Term Debt and Other Financing Arrangements.
(3)In connection with the Company recording the fair value of its financial obligations in the amended 2021 and 2023 Funding Agreements, it recorded a debt discount of $11.6 million and $4.5 million, respectively, representing the difference between the present value of the future principal payments discounted using the prevailing market rate at the date of issuance of the debt and the effective rate. The offset was recorded to deferred revenue and is being recognized into revenue over the Phase 1 and 2 Service Periods, respectively.